For Australian investors, choosing between Vanguard’s diversified ETFs like VDHG, VDGR and a professionally managed portfolio constructed from ETFs, like Stockspot, can be tricky.
They all offer diversification, growth, and simplicity, but how they deliver it, the risk involved and the results you get, can be quite different.
We break down how these popular investment options stack up across performance, risk, fees, and flexibility.
What are VDHG and VDGR?
Vanguard offers a suite of diversified multi-asset managed funds wrapped in an ETF structure, designed for “set-and-forget” investors. Each fund blends Australian and international shares, bonds, and cash in different proportions based on risk appetite. While VDHG and VDGR are ETFs, they are constructed as a ‘fund of funds’, meaning they do not hold the underlying shares or bonds directly. While this may not sound like a big deal, it can make a difference at tax time. This structure can make VDHG and VDGR less tax-efficient than a portfolio constructed of pure ETFs. When the underlying managed funds within VDHG and VDGR sell assets to meet redemptions, they trigger capital gains which flow through to investors. This is different to ETFs that hold the underlying assets directly, as these are structured to allow in-kind trades, minimising the need to sell holdings and reducing capital gains distributions for investors.
| ASX code | Full name | Growth assets | Income assets | Objective |
| ASX: VDHG | Vanguard Diversified High Growth Index ETF | 90% | 10% | Aggressive growth |
| ASX: VDGR | Vanguard Diversified Growth Index ETF | 70% | 30% | Growth with moderate risk |
VDHG vs VDGR vs Stockspot: Key differences
Stockspot portfolios are professionally managed diversified portfolios that use a mix of ETFs from different providers, not just Vanguard.
Each Stockspot portfolio is designed to meet varying time horizons and risk tolerances; balancing Australian shares, global shares, bonds, and gold.
Stockspot currently offers five core portfolios (from conservative to high-growth), with the Topaz portfolio being the closest equivalent to Vanguard’s VDHG with roughly 78% allocation growth assets and 22% to defensive assets. Vanguard’s VDGR can be compared closely to stockspot Emerald portfolios due to its 70% allocation to growth assets and 30% weighting to defensive assets.
| Feature | VDHG | Stockspot Topaz | VDGR | Stockspot Emerald |
| Growth / Defensive Split | 90% / 10% | 78% / 22% | 70% / 30% | 70% / 30% |
| Investment type | ETF made of unlisted managed funds | Professionally managed portfolio of listed ETF | ETF made of unlisted managed funds | Professionally managed portfolio of listed ETF |
| Diversification | Diversified mix of vanguard products | Diversified mix of ETFs from multiple issuers | Diversified mix of vanguard products | Diversified mix of ETFs from multiple issuers |
| Management fee | 0.27% p.a. | Ranging from $1 per month for balances under $20,000 and from 0.66% to 0.396% for balances above $20,000 | 0.27% p.a. | Ranging from $1 per month for balances under $20,000 and from 0.66% to 0.396% for balances above $20,000 |
| Exposure to gold | None | Yes, 12.3% in all portfolios | None | Yes, 12.3% in all portfolios |
| Tax efficiency | Moderate due to underlying structure | High due to ETF structure | Moderate due to underlying structure | High due to ETF structure |
| Customisation | None | Via themes for accounts over $20,000 | None | Via themes for accounts over $20,000 |
VDHG vs VDGR vs Stockspot performance
Performance will always vary depending on markets, past performance is no indication of future performance and investment in financial products involves risk.
| Portfolio | 1 year | 3 years (p.a.) | 5 years (p.a.) |
| VDHG | 15.7% | 17.6% | 12.8% |
| Stockspot Topaz | 20.7% | 18.6% | 12.3% |
| VDGR | 12.9% | 14.6% | 9.6% |
| Stockspot Emerald | 20.0% | 17.6% | 11.2% |
Performance insights
- VDHG delivered higher returns than VDGR thanks to its higher allocation to equities (and risk).
- Stockspot Topaz outperformed both Vanguard ETFs over the past year and three-year periods, largely due to:
- Broader ETF selection across issuers
- A strategic 12.3% allocation to gold, which acts as a defensive buffer during volatility
- Stockspot Emerald outperformed the comparable risk matched VDGR over a 1,3 and 5 year period and also outperformed the higher risk VDHG alternative, over the past 1 year and matched the 3 year performance.
VDHG vs VDGR vs Stockspot risk and volatility
Stockspot’s use of gold helps reduce volatility compared to VDHG and VDGR, which can fall more sharply during equity market downturns.
| Portfolio | Investment approach |
| VDHG | Very aggressive growth |
| Stockspot Topaz | Aggressive growth |
| VDGR | Growth |
| Stockspot Emerald | Growth |
Tax efficiency
Both VDHG and VDGR are ETFs that invest in Vanguard’s unlisted managed funds, which can trigger unexpected capital gains distributions when other investors redeem their units. This means you could pay tax even if you don’t sell your investment.
Stockspot portfolios are constructed completely from listed ETFs, which generally are more tax-efficient, since ETF managers don’t need to sell underlying holdings when investors sell their units.
This difference can have a meaningful long-term impact on after-tax returns.
Personalisation
Vanguard’s VDHG and VDGR do not have the facility for personalisation, investors would need to purchase additional ETFs outside of these products to complement their core holdings. Stockspot offers customisation via Themes for any investment client with a portfolio balance over $20,000. Investors can add extra assets, countries or market sectors to their portfolio.
VDHG vs VDGR vs Stockspot: fees comparison
| Portfolio | Fee | What’s included |
| VDHG | 0.27% p.a. | ETF Management |
| VDGR | 0.27% p.a. | ETF Management |
| Stockspot portfolio | 0.396% – 0.66% p.a. (tiered) or $1 per month for accounts under $20,000 | Portfolio management, advice and support |
While Stockspot’s fee is higher, it includes portfolio management, ongoing advice and support, services not provided by standalone ETFs.
FAQs
Is VDHG or VDGR better?
VDHG typically delivers higher returns but is more volatile. VDGR offers slightly smoother returns with slightly lower risk, but both are growth focused portfolios. The right choice depends on your investment horizon and tolerance for market swings. If you prefer investment advice and allocation to gold within your portfolio, or are looking for exposure to other assets like cryptocurrency all held in one place, explore Stockspot portfolios and the satellite investments available.
Is Stockspot better than VDHG or VDGR?
Stockspot’s comparable portfolios (Topaz and Emerald) have outperformed both VDHG and VDGR over recent periods (with the higher risk VDHG outperforming Stockspot Topaz over the past 5 years by 0.5% as at 30 September 2025). Stockspot offers broader diversification, including gold and ETFs from multiple issuers. Stockspot also provides professional management, advice, and customisation.
Are VDHG, VDGH or Stockspot suitable for beginners?
Yes, all three are designed for hands-off investors. The main difference lies in the level of support and personalisation you want.
How do Stockspot and VDHG or VDGR fees compare?
The Vanguard ETFs have lower management fees but offer no advice or support. Stockspot’s slightly higher fees include digital advice.
Conclusion
All three approaches (VDHG, VDGR and Stockspots portfolios) provide diversification across markets and asset classes, but the choice comes down to an investor’s level of growth focus, volatility tolerance, preference for professional management and added flexibility or views on the inclusion of gold as a diversifier.
Stockspot portfolios are designed to offer a broadly diversified, tax-efficient, and professionally managed solution, while retaining flexibility for investors who want additional customisation.
